| Summary of Significant Accounting Policies | Note
2. Summary of Significant Accounting Policies Foreign
Currency Translation The
reporting currency of the Company is the United States dollar. Assets and liabilities other than those denominated in U.S. dollars,
primarily in Hong Kong and the United Kingdom, are translated into United States dollars at the rate of exchange at the balance
sheet date. Revenues and expenses are translated at the average rate of exchange throughout the period. Gains or losses from these
translations are reported as a separate component of other comprehensive income (loss) until all or a part of the investment in
the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax because the Company
expects to reinvest the amounts indefinitely in operations. Transaction
gains and losses that arise from exchange-rate fluctuations on transactions denominated in a currency other than the functional
currency are included in general and administrative expenses. Liquidity
and Capital Resources Historically,
the Company has incurred net losses and negative cash flows from operations which raise substantial doubt about the Company’s
ability to continue as a going concern. The Company has principally financed these losses from the sale of equity securities and
the issuance of debt instruments. The
Company may be required to raise additional funds through various sources, such as equity and debt financings. While the Company
believes it is probable that such financings could be secured, there can be no assurance the Company will be able to secure additional
sources of funds to support its operations, or if such funds are available, that such additional financing will be sufficient
to meet the Company’s needs or on terms acceptable to us. At
March 31, 2019, the Company had cash of approximately $1,076,000. Together with the Company’s
current operational plan and budget, the Company believes that it is probable that it will have sufficient cash to fund its operations
into at least the third quarter of 2020. However, actual results could differ materially from the Company’s projections. Accounts
receivable, revenue recognition and concentrations Performance
Obligations Revenue
Recognition
1. 123Wish derives income from user subscriptions,
sale of merchandise, sale of tickets for experiences with social media influencers and artists, and the sale of corporate
sponsorships, each of which is a separate performance obligation. User subscriptions cover a defined period of time (typically
one month) and the revenue is recognized as the Company satisfies the requisite performance obligation (over the defined subscription
period). Sale of merchandise and tickets are recognized when the customer has paid for the item and when the merchandise and/or
ticket has been delivered to the customer. Corporate sponsorship packages are non-refundable and relate to brand association.
The Company has no further service deliverable to the sponsor and the revenue is recognized when the agreement is entered
into by both parties and the required marketing materials have been delivered to the corporate sponsor for their use.
2. Love Media House derives income from recording
and video services. Income is recognized when the recording and video services are performed and the final customer product
is delivered and the point at which the performance obligation is satisfied. These revenues are non-refundable.
3. Browning Production & Entertainment, Inc
derives income from the advertising associated with the airing of television series produced by BP&E and also license
income from the show of series on certain channels based on the number of viewers attracted. Advertising revenue is recognized
when the series to which the advertising relates is aired. The
Company does not have off-balance sheet credit exposure related to its customers. As of March 31, 2019 four customers accounted
for 69% of the accounts receivable balance and as of December 31, 2018, three customers accounted for 68% of the accounts receivable
balance. Two customers accounted for 69% of the revenue for the quarter ended March 31, 2019 and one customer accounted for 82%
of the revenue for the quarter ended March 31, 2018. During
the three months ended March 31, 2019, $7,500 of revenue were generated from Maham, LLC, an acquisition target. Income
taxes The
Company continually evaluates its uncertain income tax positions and may record a liability for any unrecognized tax benefits
resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties
are recorded as a component of interest expense and other expense, respectively. Because
tax laws are complex and subject to different interpretations, significant judgment is required. As a result, the Company makes
certain estimates and assumptions in: (1) calculating its income tax expense, deferred tax assets, and deferred tax liabilities;
(2) determining any valuation allowance recorded against deferred tax assets; and (3) evaluating the amount of unrecognized tax
benefits, as well as the interest and penalties related to such uncertain tax positions. The Company’s estimates and assumptions
may differ significantly from tax benefits ultimately realized. Historically the Company has not filed income tax returns and
the related required informational filings in the US. Certain informational filings if not filed contain penalties and such penalties
could be material. The Company is currently addressing this issue with advisors to determine the amount, if any, of potential
payments due. Given the complexity of the issue the Company is unable to quantify a range of potential loss, if any. Accordingly
no liability has been recorded in the accompanying consolidated balance sheets in respect of this matter Net
Loss per Share Basic
net loss per share is calculated by dividing the net loss attributable to common shareholders by the weighted average number of
common shares outstanding in the period. Diluted loss per share takes into consideration common shares outstanding (computed under
basic loss per share) and potentially dilutive securities. For the three month periods ended March 31, 2019 and 2018 all outstanding
warrants and shares underlying convertible debt are antidilutive because of net losses, and as such, their effect has not been
included in the calculation of diluted net loss per share. Common shares issuable are considered outstanding as of the original
approval date for purposes of earnings per share computations. Share-Based
Compensation The
Company accounts for stock-based awards at fair value on date of grant and recognition of compensation over the service period
for awards expected to vest. The fair value of stock options is determined using the Black-Scholes option pricing model, which
includes subjective judgements about the expected life of the awards, forfeiture rates and stock price volatility. Use
of Estimates The
preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of
the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company
makes estimates for, among other items, useful lives for depreciation and amortization, determination of future cash flows associated
with impairment testing for long-lived assets, determination of the fair value of stock options and warrants, determining fair
values of assets acquired and liabilities assumed in business combinations, valuation allowance for deferred tax assets, allowances
for doubtful accounts, and potential income tax assessments and other contingencies. The Company bases its estimates on historical
experience, current conditions, and other assumptions that it believes to be reasonable under the circumstances. Actual results
could differ from those estimates and assumptions. Recently
Adopted Accounting Pronouncements In
February 2016, the FASB issued ASU 2016-02, “Leases,” which created a new Topic, ASC Topic 842 and established the
core principle that a lessee should recognize the assets, representing rights-of-use, and liabilities to make lease payments,
that arise from leases. For leases with a term of 12 months or less, a lessee is permitted to make an election under which such
assets and liabilities would not be recognized, and lease expense would be recognized generally on a straight-line basis over
the lease term. This standard is effective for the Company beginning in 2019 and was adopted by the Company for the year beginning
January 1, 2019. The Company has evaluated the impact of this revised guidance on its financial statements and determined it had
no material impact, as the Company has no leasing arrangements with terms greater than one year. |
